EMPLOYEE WORKING PART OF THE YEAR ETDS RETURN AND FORM 16

Dear friends ,as the year end is coming closer ,workload is increased due to various return to be filed and finalisation of accounts and one of the work is filing of Etds returns for salary form 24q .In last quarter a one additional annexure i.e annexure II is to be filled in addition to regular quarterly return.My Dear Friend Rajiv Jain has discussed some of the problem relating to last quarter salary return (ETDS q4) and I have tried to resolve that problems to best of my knowledge and I thing you may have also facing problem like that so I am giving the ques and answer for all of you.

ques:A person has worked under four employer in a financial year.
Ans:CBDT has issued a clarification circular regarding annexure II form 26q Q4 main points covered in the circular are

1. In annexure I figures of relevant quarter should be shown and in annexure II actual figure of the year should be shown.
2. Where an employee has worked with a deductor for part of the financial year only, the deductor should deduct tax at source from his salary and report the same in the quarterly statement of the respective quarter(s) up to the date of employment with him. Further, while submitting Form No.24Q for the last quarter, the deductor should include particulars of that employee in Annexure II irrespective of the fact that the employee was not under his employment on the last day of the year.
3. Similarly, where an employee joins employment with deductor during the course of the financial year, his particulars should be reported by the current deductor in Form No. 24Q of the relevant quarter. Further, while submitting Form No. 24Q for the last quarter, the deductor should include particulars of such employee for the actual period of employment under him in AnnexureII.

now point wise answer to ques

1. In annexure II Q4 net taxable amount can not be negative so we can show deduction u/s 80 C maximum up to gross income (salary) shown.This limitation is due to FVU(file validation utility) as if income shown as negative it will not run through fvu.The point you should keep in mind while filing data of such employees.Fill period of income to/from date exactly against that employee.In above case show show saving amount u/s 80c upto 40000.
2. Regarding form 16 each employer should show period of employment from to in form 16 in income column give salary paid by them only and in saving column saving actually submitted to them.and none of the employer should calculate tax liability ,just give salary figure and saving figure without any tax calculation.
3. One more point,first three employer should also fill detail period of service and , salary paid in annexure II form 24q in respect of the employee evan at the end of the year he is not working with them.

hope you will understand what I want to say.If you have something to add or have a different version on the problem then please record in comment section.


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